6 August 2010 The voice of the auto industry MPs ‘shocked’ by online auctions MPs speaking in Parliament at Blue, speaking at the first dealers were among those who stock before the loophole was the first reading of the Consumer reading of the Bill in Parliament sold in this manner, and said she closed up through legislation Guarantees Amendment Bill in June this year, described online was worried to learn that the such as this.” described as ‘shocking’ the auctions as a ‘loophole’. MTA recommended the practice Many of the MPs who spoke process of dealers selling older “Consumers who buy through to traders. made reference to the MTA’s vehicles via online auction, when the competitive online auction “Amongst those people taking recommendations, including the provisions of the Consumer process fall through a loophole in advantage of that loophole are Greens MP Sue Kedgley, who Guarantees Act (CGA) do not apply. the current form of the Consumer some motor vehicle traders. I called the revelation the MTA was The private member’s bill, Guarantees Act. The loophole was extremely concerned to advising members to sell older cars sponsored by National MP Jackie currently allows unscrupulous hear reports that at the motor by auction ‘shocking’. Blue, contained provisions to professional sellers to sell poor industry forums run in 2008, the The Bill, read in June, was change the status of online quality products without fear of Motor Trade Association was supported by Members from auctions on websites such as Trade come-back.” actively advising car salespeople National, Labour, the Greens, and Me, so that the CGA will apply to Blue, a National-List MP based to make use of the loophole to the Minister of Consumer Affairs, the goods. in Mt Roskill, said motor vehicle dispose of older or less reliable Heather Roy. The Bill has since been continued on page 6 Is strong July a sign of market turnaround? Is the used car market finally on from the fall in April. upswing. The best they’ll say is that the road to recovery? But dealers say the market is still inquiry levels were good in July Used import sales figures for volatile, with inquiries and sales and that, increasingly, inquiries July might indicate that it is, with good one week, bad the next. That became sales. sales nearing the 8000 mark for the makes forward buying difficult, But there’s a willingness to first time since 2007. even in terms of the models being believe things are picking up, albeit The sales graph also shows an carried. tempered by a nagging worry that increase over June where sales Even the optimists are cautious the July sales figures may have SUV market evened out after inching ahead about heralding an enduring sales been a one-off spike. continued on page 17 roars p.8

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ASIAN VENTURE V11 Nagoya 29 Mar Yokohama 31 Mar Auckland 19 Apr Tauranga 22 AprCARRERA Napier 22 Apr V2 Wellington 21 Apr Lyttelton 22 Apr Sakaisenboku 29 Jul - Nagoya 30 Jul - Yokohama 31 Jul - Auckland 14 Aug - Tauranga 17 AugORCHID - Napier 17 ACE Aug -V1 Wellington 16 Aug - Lyttelton 17 Aug Sakaisenboku 26 Mar Yokohama 30 Mar Auckland 18 Apr Tauranga 22 Apr Napier 22 Apr Wellington 21 Apr Lyttelton 22 Apr MADAME BUTTERFLY V2 SakaisenbokuMADAME 28 Jul - Nagoya BUTTERFLY 29 Jul - Yokohama V1 31 Jul - AucklandSakaisenboku 24 Aug - Tauranga 29 Mar 28Nagoya Aug - 30Napier Mar 28 Yokohama Aug - Lyttelton 31 Mar 27 Aug Auckland 21 Apr SARACEN STAR V5 SakaisenbokuEUROPEAN 14 Aug - Nagoya EMERALD 16 Aug - Yokohama V40 17 Aug - Auckland 3 SeptSakaisenboku - Tauranga 8 Sept14 Apr - Napier Nagoya 8 Sept 15 Apr - Wellington Kawasaki 6 Sept16 Apr - Lyttelton 7 Sept Auckland 1 May Tauranga 4 May Napier 4 May Wellington 3 May Lyttelton 4 May

CARYTOKYO RICKMERS CAR V1 V1 SakaisenbokuSakaisenboku 26 26 Aug Apr - Nagoya Nagoya 27 27 Aug Apr - YokohamaYokohama 3030 AugApr - AucklandAuckland 12 13 Sept May - Tauranga Tauranga 16 4 SeptMay - NapierNapier 1616 MaySept -Wellington Wellington 16 14 May Sept Lyttelton- Lyttelton 16 15 May Sept

TRISTANISOLDE V3 V4 SakaisenbokuSakaisenboku 29 28 Aug Apr - Nagoya Nagoya 30 29 Aug Apr - Yokohama Kawasaki 3031 AprAug - Auckland 24 Sept - Tauranga 29 Sept -Auckland Napier 29 21 Sept May - Wellington 26 Sept - Lyttelton 27 Sept

www.hoegh.com Tokyo Osaka Nagoya P + 81Tokyo 3 6436 3320 P + 81Auckland 6 6265 8580 P + 81 5 2968 1731 PF ++ 8181 3 6436 33283320 FP + + 81 64 6 9 6265 373 85813375 FP + + 81 64 5 32968 379 17307682 F + 81 3 6436 3328 www.kiwicar.comF + 64 9 379 9477 F + 64 3 379 3480 Auckland Christchurch www.hoegh.comP + 64 9 373 3375 P + 64 3www.kiwicar.com 379 7682 F + 64 9 379 9477 F + 64 3 379 3480 editor’s note Steady

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The problem with the The sales curve is a gradual monthly sales stats is that and steady climb, perhaps through-out the month you an indication that while the hear a whole range of opinions growth is not spectacular, it’s Your IT about how sales are going. not a result of calendar quirks Sometimes they’re slow, or sales drives, but genuine vendor sometimes they’re steady, demand. sometimes it’s the best month Around the world, the in a while. manufacturers released thinks one According to the MTA, used the half-year reports with vehicles sales in July were the production levels and profits size fits all? highest for 26 months, the best well above 2009. sales month since May 2008. Fingers crossed that the Technology Solutions for Industry I doubt that anyone will be modest growth will continue. As New Zealand’s leading developer of specialist automotive business cracking open the champagne Hopes of a dramatic upswing software systems, we’ll give you the right solution for your operation. just yet. For every dealer aside, the most important thing Whether you are the smallest workshop or the largest dealership we have reporting a good month, is that the market stays steady, your next solution, and you won’t be forced into a system intended for someone smaller, larger or just plain different. We’ve been developing another one will say it’s quiet. continues to grow, without any systems for businesses just like yours for over 25 years. But one sign that can give surprises. Call us to discuss your needs and to learn how we dealers hope is that the used can give you more control with less effort. Specialist Business Management Systems from TSI: market doesn’t feature the Orion, Autoline, Midas, Wasp, SAM peaks and troughs which the Stian Overdahl CONTACT: Paul Wilkinson - Business Development Manager new market displays. Editor Phone: 09 583 2451 Mobile: 0274 475 514 (formerly Systime) Email: [email protected]

www.autofile.co.nz | 3 news One in, one out, at Great Wall Chinese brand Great Wall, which plans for immediate expansion. has been selling Utes and SUVs in Davie Motor Group Great Wall, on New Zealand since late last year, Cavendish Drive in Manukau City, has has had one franchisee leave the left the network, for which Ateco is network and another join. the distributor. Davie Motor Group Great Wall, Ian Penten, chief executive officer on Cavendish Drive in Manukau City, of Davie Motors Holden, confirmed South Auckland, has left the network. that as of August 1 they are no longer Davie Motors Holden CEO, operating the Great Wall franchise, Ian Penten, confirmed that as of though declined to comment further. “But we’re not looking to have tough for everyone, but we had a August 1 the company is no longer Meanwhile, a Great Wall franchise a huge network in the short- good July, our best month ever.” operating the Great Wall franchise. has been opened by Team Motor term; it’s better to have a smaller The Great Wall range is currently He declined to comment further. Group (TMG) on Newmarket number of good dealers who can only available with manual Meanwhile, Team Motor Group Broadway, at the intersection where sell more volume. transmission and petrol engines. (TMG) has opened a Great Wall the Great South Road dealership “I think the market is Manual SUVs and cars typically franchise on Broadway adjacent stretch begins. consolidating into the metro and don’t do as well in the Auckland to Auckland’s upscale Newmarket Mark Vidak, the Great Wall Dealer provincial areas. We’ll see how region, with congested roads shopping precinct, the intersection Development Manager, says there is that all pans out, but we’re not making the ease of an automatic where the Great South Road car no relation between the timing of the looking to have an extremely large car the preferred option. sales zone begins. two. Vidak says there are no plans for network in the future.” However, Vidak says it’s only a Mark Vidak, Great Wall dealer immediate expansion. Vidak says both the Utes and matter of time before Great Wall development manager for New “We’ve got a very strong the X240 SUV are selling well, with offers automatic and diesel vehicles. Zealand distributor, Ateco, says bunch of dealers at the moment, the latter doing particularly well “New product lines will be there’s no connection between and as people become more in July. introduced in the next six to 12 the timing of the two franchise familiar with us that will open up “We’ve just come off a very months which will move us into changes. He says the brand has no more doors as well. good July, for us. The market’s those areas.” Get your facts right - LandCruiser recall? or pay the price While is recalling to repair those vehicles free of Last week the Fair Go program costing a trader $600 and the 80,000 LandCruisers world-wide, charge to the owner, so we’ll be showed yet again how crucial it inconvenience of the Motor those sold new in New Zealand contacting independently used is to get it right, when it comes Vehicle Disputes Tribunal, for will not be affected, Toyota New imports as well.” to displaying vehicle history and simply not having the correct Zealand has said. Any dealers who might have accurate vehicle information. cc rating displayed on the CIN Yet Toyota cannot confirm at this sold a LandCruiser won’t have any The CIN windowcard law windowcard. The difference stage whether any LandCruisers responsibility says Carroll. “We requires disclosure as to whether between 1320cc and 1500cc is sold by Toyota Signature Range will contact those customers directly, a vehicle has “previously been now officially $600! be recalled, says Paul Carroll, Toyota because we take responsibility de-registered” or “imported as The bottom line is that not New Zealand’s General Manager for safety recalls, which not many damaged”. It’s a very important only is it good business practice After Sales. manufacturers in New Zealand do. bit of information, it’s very easy to to check your vehicles properly, “We’re still going through that But we take the view that we built get, and very expensive if you get but you also need foolproof at the moment, as it takes a while the car, so if it’s a safety recall we’ll it wrong. In Fair Go’s most recent systems in place to display the to do. We get the frame number do our best to find the vehicle, and item a vehicle dealer, who was still information exactly as it appears range, give it to the NZ Transport repair it, free of charge.” using hand-written windowcards, on the Motor Vehicle Register Agency, and they go through and The recall, to correct an had ticked the box “not imported to meet your obligations under find out if there are any around. ‘extremely rare steering fault’, damaged’- maybe a simple the laws that govern the sale of They then they send them to us, involves 480,000 vehicles globally, mistake to make, but an important motor vehicles. and we contact the owners. So the majority of these Avalon and expensive one, as they ended After all, who needs Fair Go it will probably be a week or two sedans sold in the US. up fully refunding the purchase knocking on their door? before we know.” 2630 LandCruisers have been price of the car. “And of course there might be recalled in . Yet another independently used imports as Meanwhile New Zealand simple issue well. Because it’s a safety recall, has announced a recall of 123 ended up Toyota New Zealand’s policy is LX470 off road vehicles.

4 | www.autofile.co.nz news One in, one out, at Great Wall 40-year veteran new kid on the block David Denton has opened a Park 2 Sell on his yard on Great South Rd, Manurewa. Denton, who first began trading in 1970, is back in the business six years out of the trade. With rates, electricity and insurance to pay, Denton decided he’d get back in the business. Denton previously had operated off the yard for 35 years, selling mainly second-hand Holden and Falcons. The Park 2 Sell, or Park n Sell model works by giving private sellers yard space to sell their car. Sellers pay a set fee for the first commission, the emphasis is on Christchurch, Whangarei, as well as my own cars and not the customers’, month, and then a small daily volume and high-turn over. several in Auckland. the turnover won’t be there, and if charge thereafter. Denton believes the models are Asked whether eventually the customers’ cars aren’t selling the The seller is wholly responsible a popular concept in the United he’ll run his own cars on the yard business won’t work.” for the sale, with the owner of the States, with growing popularity in alongside the public’s, Denton says While the business has only yard not involved. Australia and England. it wouldn’t fit the business model. been up and running for two weeks, The model fits his requirements There are Park n Sell yards “The business requires high his yard already contains 30-odd perfectly, says Denton. With a fixed in operation throughout New turnover, and a dealer will always passenger cars, utes and small fee per car, and no percentage Zealand, including Dunedin, privilege their own cars. If I’m selling trucks, as well as three boats. JAC Trucks to NZ

Two Chinese-built JAC trucks released in New Zealand are on the water and on their way immediately, while WMV are to Auckland. They’re the first in a currently waiting for Cummins likely wave of trucks build by JAC, Euro 5 paperwork to release in one of China’s largest and most Australia, which Pecotic says successful truck manufacturers. should be in October. White Motor Corporation, a WMC was established to Sydney-based bus distributor, has import Chinese-made Higer obtained the Australasian import buses and coaches into Australia. rights for JAC’s range of light, WMC are looking to set up a medium, and heavy-duty trucks. JAC and Higer dealer network, with The trucks are Euro 4 CEO Jason Pecotic interviewing compliant, and so can be prospective dealers next month. Trans Future 6 Voyage 39 osaka 2 Aug, Nagoya 3 Aug, Kawasaki 7 Aug, Auckland 25 Aug, Lyttelton 27 Aug, Wellington 28 Aug, Nelson 29 Aug. Trans Future 7 Voyage 39 osaka 16 Aug, Nagoya 17 Aug, Kawasaki 21 Aug, Auckland 8 Sep, Lyttelton 10 Sep, Wellington 11 Sep, Nelson 12 Sep. Trans Future 5 Voyage 43 osaka 30 Aug, Nagoya 31 Aug, Kawasaki 4 Sep, Auckland 23 Sep, Lyttelton 25 Sep, Wellington 26 Sep, Nelson 27 Sep.

www.autofile.co.nz | 5 news continued from page 1 MPs ‘shocked’ by online auctions absorbed into the Consumer Law It says,“For consumers and and you’re bidding against two or customers’. We do not support Reform Discussion document, a suppliers, the fact that the three other people, how does the anyone misleading customers, and part of the Government’s focus on Consumer Guarantees Act may fact that it’s online differ from a real it’s fair to make a quite distinct reforming consumer laws. or may not apply depending on life auction? No one’s been able to point here, that our view is that if Dr Jackie Blue says her Bill the transaction method used to point that out yet.” Trade Me auctions are currently was drafted in awareness that obtain the good is confusing, “When you buy through an able to be used and not incur the the Ministry of Consumer Affairs illogical and arbitrary.” auction you do so because you CGA, those conditions must be had identified the matter for MTA’s Communications think you can get it cheaper. So on clearly stated in the advertisement inclusion in the Consumer Law Manager Ian Stronach doesn’t that basis, it would be saying, A, I by the dealer, saying this is an Reform Discussion document. agree with the characterisation want it cheaper, and B, I want the auction, the CGA does not apply, “Even though I was aware that of the situation as a ‘loophole’. same rights and responsibilities as it’s a buyer beware forum, and the Ministry was progressing “Loophole is a bit of an emotive every other sale.” other such statements.” work, I thought it was important to term. When the law originally Trade Me has made Ian Stronach highlight this important consumer came about, both the Commerce submission on the Consumer matter in the form of a Private Commission and the Disputes Law Reform Discussion Member’s Bill to ensure that it was Tribunal were adjudicating cases, document, and supports fully addressed.” and saying in their view, Trade Me changing the status of online Blue says that since Private auctions were arguably a tender, auctions, says Trade Me Member’s Bills are selected by and therefore the CGA did not spokesman Paul Ford. “We’ve ballot, and her Bill had already apply. So you could emotively call been arguing for this loophole to been in the Ballot several months, that a loophole, but that’s actually be closed for 5 years now, as has had it been selected earlier it may the law.” Consumer New Zealand and the have gone forward to all stages. “Loophole seems to be picked Ministry of Consumer Affairs. The Nevertheless Blue is satisfied with up by the media, and it’s good loophole allows unscrupulous its inclusion in the discussion fodder, it’s ‘shocking’ according to professional sellers to sell poor document. “The Ministry’s analysis [Green MP] Sue Kedgley. But that’s quality products without fear of is in line with my thinking, and I’m the way the law stands.” Stronach doesn’t dispute that comeback.” pleased to see that it is included Stronach believes that the calls the MTA gave dealers advice at Ford says that Trade Me in the Consumer Law Reform to change the status of online industry forums. “We said at those has its own Code of Conduct. discussion document.” auctions are not entirely cogent. forums that this was a legitimate In effect, the Code asks that The Consumer Law Reform “One thing that has never been way to dispose of cars. You can sell professional traders behave as Discussion document also speaks made clear is the difference in that sense, provided you obey if the CGA applied, requiring of the need to remove the between an online auction, and an the law and do it properly.” that, “professional traders ensure ‘auction’ status of online auctions, actual auction with a hammer and “It’s an easy thing to climb goods are of an acceptable calling the situation inconsistent. gavel. If you buy a car on Trade Me, on to, to say ‘traders are duping quality and fix faults or offer a Falcon 50th Anniversary function John Andrew Ford in central the unveiling of the special the anniversary vehicles across Auckland celebrated the edition Anniversary model. the whole anniversary range, Falcon’s 50th anniversary with New Zealand received 150 of which includes the XR6 and G6E sedans, and the XR6 Ute. John Andrew received 23 vehicles from the range. John Andrew managed to sell five of the vehicles on the night. Sales Manager Richard Sumner says eight or nine have been sold already, and with significant interest they could all be gone by the end of the month.

6 | www.autofile.co.nz news The MTA’s view on online auctions

replacement or refund when Online auctions have always “There’s no criticism of Trade Me Tony Everett they’re not.” been a grey area of the law, says in terms of their forum. They offer But Ford says that rather than Tony Everett, the MTA’s Dealer a means of doing business that has a voluntary code of conduct, Services Manager sort of morphed over time to fall they’d like to see the law “They are viewed as auctions between the cracks of consumer changed. “To date our Code of by the Commerce Commission legislation. So consumer legislation Conduct has not been backed up and the Motor Vehicle Disputes needs to be modified to recognise by the law, so it would be great Tribunal, but technically they’re the existence of that forum.” to see the loophole closed and not auctions. The legal advice was The view from Parliament that change become part of the that they’re potentially viewed as seems to be that the easiest way Kiwi consumer law landscape.” a type of tender process, which to resolve the issue is to have the With the submission process are not covered by the Consumer CGA apply to all online ‘auctions’. for the Consumer Law Reform Guarantees Act.” But this fix-it, Everett believes, Discussion document recently Since online auctions are not won’t be in the best interests of for all those vehicles that would closed, and verbal submissions classified by the law as auctions, consumers or traders. have been auctioned, some will being held in August, it will be traders are not required to display “If an online auction forum like be sold as list price vehicles, while some while before any new law the conditions of sale in the Trade Me falls back under the CGA, others would end up in a formal is drafted. listing, which is where much of the it’s easy to make the prediction lot auction environment, where The MTA has made submission trouble comes from, says Everett. that traders will probably no consumers have got to physically against the proposal, and Stronach “Where online auctions currently longer use that forum, they’ll just take time out of their life and go is hopeful the proposed changes fail, is that there isn’t an obligation have a list pricing when they sell stand in those forums. I’m not sure will not find their way into law. to declare terms of trade, or terms on Trade Me. Would consumers that that’s an advance given the “We see that there is a lack of of sale, which we think is an benefit? I’m not sure, because benefits of e-commerce.” logic here, and it looks like it’s been absolute requirement.” overcome by emotion, with words The situation is exacerbated like loophole have been thrown by the presence of the Buy Now around. I think because dealers mechanism, believes Everett. “You are traditionally an easy target, can have an auction, and you can because they’re always seen to be also have a buy now price listed, on the wrong end of the equation, and functionally they’re two quite I think that’s where it may have different forums. One includes gathered some momentum. CGA provisions, and one does not. “There’s a little bit of It’s arguably inviting problems by understanding to occur in our having two buying mechanisms humble opinion.” existing on the one forum.” Take us for a test drive...

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www.autofile.co.nz | 7 SUV market picks up pace But stock availability is hampering some

Sales of new SUVs have of Sales and Marketing Strategy so we’re calling that a sub-compact increased dramatically in 2010, Daniel Cook says new models, and SUV. We’ve just launched that at with sales up 65 per cent on last a customer shift towards SUVs has the end of July, and already it’s year, in volume terms an extra worked well for them. selling well.” 3,500 units. This exceeds the “Late last year we introduced “If you look at the Outlander, average growth in the new vehicle a new Outlander, which has we’ve got a lot of people buying market, and the market share of continued to sell incredibly well for who were previously in cars like SUVs has increased from 15 per us. We’ve also introduced a two- Falcons or Commodores, coming cent to 22 per cent, (all figures wheel drive model of Outlander, down to more fuel-efficient SUVs, year to date to June). This has seen which we’re finding a lot of buyers because SUVs now aren’t necessarily a corresponding drop off in the are purchasing to replace their old now fuel inefficient. It’s a bit of a market share of passenger cars, station wagons. So a lot of fleets falsity that all SUVs guzzle gas.” from 60 per cent in 2009 to 55 per and companies buying those off Like many of the new car cent so far this year. us to fulfil their need for a station distributors, Mitsubishi is faced with While the strength of the wagon-type vehicle, but seem to be problems obtaining enough stock movement has surprised many, a lot more practical than a wagon. to meet demand. “We’re working “I think that the there’s a great with some distributors struggling “Pajero sales have continued around lead times, and ensuring marriage between the New Zealand to source enough stock, many to be strong for us this year, due we’ve got enough stock, because consumer and the SUV, it fits with attribute the increase to a move to a large tow-rating. Pajero has a the market for us has been growing the New Zealand lifestyle, while SUVs away from large cars, increased 3,300 kilogram tow-rating, which is so quickly. The market is up about continue to get safer, more practical, efficiency, and the versatility and probably one of the best offerings 15 per cent year to do, while we’re and more relevant to New Zealand. indeed fashionableness of SUVs. in the market for people with large up about 60 per cent, so our growth “We’re enjoying the year in terms There can be little doubt that boats or horse floats. That’s been has been phenomenal in 2010. of sales, our new IX35 has exceeded this sales growth is also aided by going well for us, particularly since We’ve had certainly had constrained expectations, in terms of demand. the emissions standards, which has Toyota put there prices up and stock at that level.” We’re expecting a very strong virtually ended the importation of couldn’t match our tow-rating.” second half of year, there has been used SUVs. With the launch of sub- Hyundai is second to Toyota in the delayed purchasing from some of compacts, Cook agrees that the line SUV market, with 14 per cent of sales the market.” Mitsubishi is one company that between SUV and car is going to (year to date to June). Hyundai Chief When asked about stock have experienced strong growth in become increasingly blurred. Operating Officer Tom Ruddenklau constraints, Ruddenklau says the SUV market, with volume more “We’ve just launched a new says Hyundai is enjoying the year in they’ve got plenty of stock, it’s just than doubling, and market share product called the ASX, which terms of sales. He believes growth not all in New Zealand. up significantly. Mitsubishi Head competes with the Qashqai, in the SUV market has come about “But we’ve got great support with improved product, and the from the factory and great New SUV sales YTD (YTD June) natural fit of the SUV to New Zealand understanding of the areas of 2010 2009 Variance +/- Vol. & % conditions. growth in the market. We could SUV 8,614 5,201 3413 65.62% always have more, but we’ve got Private 3,094 1,791 1303 72.75% New SUV sales YTD by marque (YTD June) plenty coming.” Business 4,295 2,708 1587 58.60% 2010 2009 While the SUV market is up, not Gov’t 305 275 30 10.91% Volume Share Volume Share all brands are seeing equivalent Rental 920 427 493 115.46% Ford 462 5.36% 238 4.58% growth. Suzuki has not seen much Market share new vehicle sales (YTD June) Holden 510 5.92% 299 5.75% growth in sales, which Suzuki 2010 YTD 2009 YTD 217 2.52% 156 3.00% Sales Manager Gary Collins says is Passenger 54.5% 60.2% Hyundai 1213 14.08% 796 15.30% likely attributable to Suzuki’s niche SUV 21.9% 15.3% Jeep 163 1.89% 125 2.40% position in the market. Suzuki only Light Commercial 21.0% 20.6% Kia 429 4.98% 307 5.90% contests the compact segment, and Heavy Comm 2.2% 3.6% Land Rover 199 2.31% 76 1.46% produces front wheel drive, low final Other 0.5% 0.4% Mitsubishi 826 9.59% 354 6.81% drive ratio vehicles, targeting those Segmentation (YTD June) Nissan 430 4.99% 454 8.73% that will be using the vehicles for 2010 % Share 2009 % Share genuine off-road use. This makes Subaru 691 8.02% 334 6.42% SUV Compact 4,018 46.6% 2,453 47.2% Suzuki attractive to the private Suzuki 242 2.81% 275 5.29% SUV Medium 3,527 40.9% 1,901 36.6% buyer, but means it isn’t common as Toyota 1907 22.14% 865 16.63% SUV Large 288 3.3% 203 3.9% a fleet vehicle. Collins also attributes Volkswagen 164 1.90% 142 2.73% SUV Luxury 781 9.1% 644 12.4% the lack of growth to advertising, Information supplied by the MIA

8 | www.autofile.co.nz Subaru production growing steadily Strong sales led to Subaru to May total of 261,575 was 168.4 factories in Japan building an percent up on the same five all-time record May record of months of 2009. 31,646 passenger cars, a 149.2 Total sales in Japan continue to percent increase on the same grow, with May’s 12.254 (7479 of month of 2009. them minicars) 113.5 percent ahead Add to that 5391 minicars in of 2009; January to May, total sales Japan and 6682 passenger cars rose 110.6 percent to 77,083. in offshore factories and the The Forester SUV and Legacy- monthly total is 145.7 percent based Exiga were the main ahead of May 2009. contributors to the passenger Minicar production fell in car rise. May for the first in five months May exports of 24,431 were because Subaru discontinued 164.3 percent up on May 2009, The Pajero can tow 3,300 kg (braked) the R1, R2 and Pleo. in response to rising sales in key Subaru’s global production markets. The five-month total of with their focus being elsewhere got some issues of supply out of increased in May for the seventh 131,813 is 159.7 percent ahead with the Kizashi campaign. Spain, which where Pathfinder consecutive month. The January of last year. comes from, and that is also Nissan Managing Director John reflected in our STX 450, that we Manley sees the rise of SUVs as can’t access as much product as corresponding to the fall in large we’d like at this stage. Mazda lifts production and car sales. He pegs the move in part “We have some really tight to consumer attitudes and fashion. parameters around allocation that sales in Japan “If you look at private buyers obviously we’d prefer not to have. I a lot of them are looking at think it just demonstrates globally the market, they’re examining that the world market has picked conditions, they might be retired up quite a lot. By and large, we have people, and they’re looking at some supply constraints on a lot of where things are going. Private our product currently.” buyers of new cars are by nature Manley says that while globally conservative, so if they don’t need a the total industry volume is lifting, new car they won’t buy one. nevertheless it take some time to “Cars are dictated a lot by fashion, increase or decrease production Mazda built almost 60 percent 38,232 units. I wouldn’t say trendy, but certainly levels, meaning that production more vehicles in Japan between Mazda’s total domestic if you’ve had a number of large cars levels are falling short of demand. January 1 and June 30, 2010, than production volume rose year-on- in succession, are you now saying, ‘I “When the global financial crisis it did in the same period last year, it year for the seventh consecutive think I’ll try a cross-over or I’ll try an arrived, all of the manufacturers announced this week. month in June, growing 17.8 SUV’. People tend to buy what they globally cut back on production. Mazda said the 59.3 percent lift percent compared to June 2009, need, so if they don’t need a large You can’t turn production off reflected increased production of reflecting increased production of car they won’t buy it. But people also overnight, because you have passenger vehicles. both passenger and commercial tend to be dictated to by what they suppliers and sub-contractors All four of its key models vehicles. perceive is good for a change, or producing componentry for showed strong production growth Mazda’s production in factories what better suits their need.” vehicles and the order process goes to June 30. outside Japan improved 44.4 Nissan is one company who have out a long way in advance. The big player was the Mazda3 percent in June 2010, the 13th been affected by a lack of stock. “What I hear around the world (Axela) with 185,348 units (37.9 consecutive monthly increase, While their sales volumes in the from Nissan, and from the other percent up year-on-year), followed year-on-year. SUV market are largely unchanged, manufacturers, is that everybody by the Mazda2 (Demio) with 75,351 Mazda says that was on the their boat hasn’t lifted with the is struggling to meet production built (up 27.1 percent). back of “healthy production of rising tide, with market share requirements to meet market The big winners percentage-wise both passenger and commercial down. Manley cites stock issues as demand. That’s a very positive thing, were the Mazda6 (Atenza) whose vehicles.” a reason. the market is growing, but it’s a production rose 113.3 percent Japanese market sales increased “I’d certainly say Pathfinder balancing act, you don’t won’t to to 40,132; and the luxury compact year-on-year for the ninth sales are down, we launched a new lose customers and sales through SUV CX-7 with a spectacular 670.7 consecutive month, growing 14.1 model and can’t get stock in. We’ve not having product.” percent production increase , to percent compared to June 2009.

www.autofile.co.nz | 9 news

VEHICLES WANTED News in brief UK Govt. announces £5,000 electric subsidy Buyers of electric, hybrid or hydrogen cars which meet certain emission BUYING NOW standards will receive a subsidy of 25 per cent of the car’s purchase price, up to a value of £5,000 (NZ$10,793). The subsidy would see the price of the Nissan Leaf, launched in the UK and the US later this year, fall from £28,350 (NZ$) to £23,990 (NZ$) Paul Curin With the change of Government, the scheme is a slightly reduced version of Labour’s promised £230 million plan. The scheme is capped at 0274 333 303 £43 million, enough to subsidize the purchase price for approximately 8,600 [email protected] low-emission cars, and will be reviewed after one year. Around 20 countries now offer some form of subsidy for LEVs. We are always looking to purchase NZ NeW cars aNd commercials ACC launches motorcycle safety programme ACC has teamed up with representatives from key motorcycle, scooter and news moped groups to look at ways to reduce motorbike injuries. As a part of the recent July 1 increase in ACC levies for motorbike and moped registrations, ACC introduced the Motorcycle Safety Levy (MSL) - a $30 annual fee for each registered motorcycle. ACC is putting this money into a ring-fenced fund that will be specifically BUYING NOW used on injury prevention initiatives to reduce the number and severity of motorcycle and moped injuries and fatalities. ACC has set up an establishment group to oversee the design of the BRETT HARRIS 029 293 1232 FARmER AUTOvIllAGE News briefs www.farmerautovillage.co.nzVehicles wanted programme, made up of eight people representing the following groups; UlyssesVolvo Club deal of NZ – Inc,done Bikers Rights Organisation of NZ (BRONZ), Women’s Karl Briggs 0274 721 551 International Motorcycle Association (WIMA), Motorcycling New Zealand, It’s been on-again, off-again, and this time it looks as if the [email protected] now Scoot NZ, NZ Classic Scooter Club, Motor Industry Association, Ministry of www.inghammotorgroup.co.nz Ford-Geely deal for the buy-out of Volvo is sign, sealed and Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ. Transportdelivered. andGeely the has NZ bought Transport the SwedishAgency. brand for $US1.8 billionACC ($NZ2.5b), is providing China’s additional biggest funding overseas to auto cover purchase. administration, Ford so that fundswill continue collected to aresupply used powertrains, directly on stampingfunding safety and other initiatives parts rather than on Always Buying Land Rover, Jaguar, VolvoPaul and Renault. Curin theto Volvo administration after the sale. of the programme. All models, NZ New, Top Money! 0274 333 303 Contact: Kelvin Hart 021 899 921 [email protected] [email protected] In-carChrysler internet reopens for yardsBMWs BMWChrysler New Group, Zealand reversing is offering an earlier in-car stance, wireless says itinternet, will offer using to a system that AlwWeA ysare Buying alwaysAny Vehiclelooking oVer to $500 purchase considered operatesreinstate 50only closed when US the dealerships vehicle is within stationary. the next few days. ContaCt our staff today LettersDrivers of intent and passengers will be sent willto 50 use of the BMWestimated iDrive 400 system rejected and an internet- Adam Winter ph: 021 635 352 e: [email protected] Kane Owen ph: 021 356 300 e: [email protected] NZ NeW cars aNd commercials capabledealerships mobile that havephone applied to access to get the their internet franchises and backemail. through arbitration, Chrysler says in a statement. They “are in locations AucklAnd Vehicle consultAnts The iDrive controller operates as a computer mouse, to navigate, select that offer customer service bene ts and will have limited adverse andimpact scroll on throughthe dealers web within content. our current network,” says Chrysler. TheThe National system Automobile can also Dealers interface Association with the says Bluetooth “it is a move and in BMW Navigationthe right direction”. System Professional to call numbers or input addresses sourced from the internet. ToyotaBMW NZ supplies managing director Mazda Mark Gilbert says the internet is an integral Wanted 2003 onwards HSV and Commodore, partMazda of manyMotor people’sCorp will dailyintroduce lives anda midsize “the beauty hybrid ofvehicle this system by is in its NZ new Suzuki, Nissan and Mazda product. simplicity,2013 based utilising on core the components driver’s internet supplied capable by Toyota mobile Motor phone.” Call Daryn Pennington 067594586 direct, [email protected] or 0274 496499 Corp,Customers the Nikkei can Business order Daily BMW reports. Internet The from two Septemberautomakers for November delivery.reached an agreement under which Toyota will supply the Toyota Hybrid System II (THS II), currently used in the third- BUYING NOW generation Prius. The deal will enable Mazda to tap the growing Newdemand NZTA for hybrids board sooner appointed than otherwise possible. For Toyota, TO ADVERTISE Transportthe arrangement Minister will Steven help lowerJoyce relatedhas announced production the costs new appointments to BRETT HARRIS 029 293 1232 thethrough Board economies of the NZ Transportof scale. Agency (NZTA). www.farmerautovillage.co.nz FARmER AUTOvIllAGE HERE CONTACT: Jerry Rickman and Tony Lanigan have been appointed for a three year term commencing 1 August, while Patsy Reddy has been appointed for a 0508 288 863 twoFiat year wants term commencing more 1 October. Phil Wills 021 877 422 Fiat CEO Sergio Marchionne says the Italian automaker will [email protected] “Jerry Rickman, Tony Lanigan and Patsy Reddy join recently-appointed increase its stake in Chrysler to 35% within two years. The rst 5% 021 455www.inghammotorgroup.co.nz 775 Chairincrement Chris could Moller come in bringing as early asstrong this year commercial after Chrysler experience begins to the board, in Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ. advertising@autofi le.co.nz additionmaking engines to their for financial, the Fiat 500legal in andDundee, engineering west of Monroe.skills,” said The Joyce. subsequentThe terms two of purchasesPaul Fitzharris will depend and Grahame on increasing Hall ended Chrysler’s on 31 July. distribution outside the US and assembling a new fuel-ef cient car in the US, he says. 10 | www.autofile.co.nz Driver magazine sold Fairfax Magazines has purchased Driver magazine and will merge it with New Zealand Autocar from the To adverTise May issue. John Baker, of former Driver publisher here conTacT: Tangible Media, says: “The publishing landscape has changed and it became 09 361 2346 clear to us that the market 021 927 941 in New Zealand was no longer able to support [email protected] two magazines devoted to new cars.”

8 | www.auto le.co.nz new cars New Swift bigger and roomier Suzuki isn’t tampering too increased track and larger diameter much with a good thing, in the wheels with lower profile tyres third generation version of its sharpen handling. phenomenally successful Swift The 1.3-litre petrol engine – seen supermini. in New Zealand on used imports – Just-released teaser photographs gives way to a new dual VVT (Variable show that despite a longer body intake and exhaust valve timing) and wheelbase, the new Swift 1200cc four-cylinder. essentially keeps the styling that has Its 70kW (94-horsepower) made it a global sales success. output is greater than the old The dimension changes improve 1300’s and torque improves to cabin space by increasing wheelbase 118Nm at 4800rpm. 50mm, lifting height by 10mm and Suzuki says fuel adding 90mm to overall length. consumption on the There have been strength, safety combined cycle is now 5.0 and mechanical changes too, and litres per 100km for the manual Suzuki says fuel effiency has increased transmission model, a decrease Higher strength steel makes the from 5.8 litres/100km. new car lighter and stiffer and impact The 1.3-litre diesel-powered safety is improved. version uses fuel at the rate of 4.2 Mazda upgrades luxury minicar Variable gear-ratio steering, litres/100km, down from 4.5 litres. Mazda has upgraded its Verisa luxury minicar which is based on the previous generation Demio (Mazda2). The Verisa is a Japanese domestic market car that comes here as a used import. The revised model gets new fabric and leather seat colours, a And as part of its 90th anniversary, fuel consumption gauge and an “eco- Mazda has launched a special edition lamp” to support economical driving. Demio, the 13C-V HID 1, for the The Verisa L adds black and sand Japanese market. coloured leather seats, automatic HID stands for High Intensity headlights, rain-sensing wipers, and Discharge headlights which are also Clean, green, and 320km/h water-repellant coating on the front auto-levelling. door windows and mirrors. Other standard equipment Porsche will push ahead to engined sports car with plug-in The Verisa C’s fabric seats are includes foglights, dark-tinted glass develop and build the 918 Spyder hybrid technology at the 2010 brown and beige. on rear door and liftback windows sports car, which is designed Geneva Motor Show in Switzerland All models have 1.5-litre motors and a choice of 11 exterior body to blend three litres per 100km and at Auto China in Beijing. and four-speed automatic gearboxes. colours, including Copper Red Mica. fuel economy with shattering That technology will be used performance. in the producing 918 Spyder. The Porsche board green- Porsche says it will reveal more lighted the project after receiving details in coming months. Triton can now tow three tonnes an overwhelming public response Company president, Michael Mitsubishi has strengthened and 245/70 R16 tyre package to the to the 918 concept car. It’s Macht, says Porsche will develop the 4WD Triton truck’s chassis to mid-range 4WD GLX Double Cab. understood Porsche received at the 918 Spyder in Weissach and boost towing capacity to three Body-colour fender flares give least 2000 expressions of interest assemble it in Zuffenhausen. tonnes, across the range. the GLX a tougher look. in the car, and has now achieved The concept car produced All models get a new high- Triton 4WD prices start at more than the 1000 firm orders it CO2 emissions of 70 grams/ efficiency air filter with pre-filter $41,990 for the 4WD GL cab/chassis required to put the half-a-million km, corresponding to fuel to improve cabin air quality on manual and peak at $54,990 for the Euro supercar into production. consumption of 3.0 litres/100 km dusty roads. GLS Double Cab Auto; 2WD pricing It debuted the concept 918 (94.1mpg); top speed is likely to In other changes Mitsubishi ranges from the GLX cab/chassis ultra-high-performance mid- be well over 320km/h. has added the premium GLS Sport manual’s $33,990 to $46,990 for the suspension and wider alloy wheel GLS Double Cab auto.

www.autofile.co.nz | 11 disputes

Transmission failure significant for The Case: The purchaser wished the dealer value of car, costly for dealer to pay for a transmission failure Background breakdown insurance. car between 11 and 26 March The Decision: In January 2010 the purchaser The parties met in Wellington at a cost of $784, and wished to Because the failure was bought a 2002 BMW X5 for $34,999 on 21 January 2010 to exchange claim for this. substational, the purchaser was from the trader. The transmission cars. At the ferry wharf, the trader entitled to compensation failed shortly after purchase. The asked the purchasers to resign The Tribunal’s decision At: the Motor Vehicle Disputes purchaser also alleged that the the VOSA and finance agreement. The Tribunal found that the Tribunal, Wellington. mechanical breakdown insurance The purchaser’s evidence was that purchaser had not contracted out arranged by the trader did not she was told by the trader that he of the Consumer Guarantees Act provide sufficient coverage for a needed the documents signed with – if they did so, it was because they major mechanical failure. “real” signatures. The purchaser were tricked into it by the trader. In provided by the policy. The trader’s position was said she was in a hurry and that she this case the contract was concluded The trader was ordered to pay that because the purchaser had just signed where he asked her too. when the purchasers signed the the purchaser the cost of repairs contracted out of the Consumer It was on this occasion that she contract on 15 January 2010 and the and hiring the rental car, $5,819.12 Guarantees Act the trader had signed the clause acknowledging trader drew down on the loan. The no responsibility in respect of that she had contracted out of the initialling of the clause ostensibly Bruce Dell’s comment the problems with the car. The Consumer Guarantees Act 1993. contracting out of the agreement on The dealer argued that the trader denies misrepresenting On 10 March 2010 the car broke 21 January was of no effect. purchaser contracted out of the the adequacy of the mechanical down. The purchaser had driven The Tribunal was satisfied that Consumers Guarantees Act in breakdown insurance. approximately 5,000 kilometres the purchaser had asked the trader respect of acceptable quality and since purchase. to remedy the problem and was defaults being of a substantial The Evidence The car was towed the car to refused. In any event, even if the character. Also, what should happen The purchasers arranged to trade- a workshop and diagnosed with purchaser had not required the in cases when goods do not comply in their car and purchase the BMW a problem with the transmission, trader to remedy the problem, with guarantees. There was also an for $34,999. The trader agreed with an estimated repair cost of because the failure is substantial, argument about a possible breach to provide the purchasers with between $3,000 and $5,000. The the purchaser is entitled to recover of The Fair Trading Act in respect of mechanical breakdown insurance workshop contacted the insurer damages in compensation for misleading conduct. and to arrange finance. Since the and advised the purchaser that the any reduction in value of the car It would seem that the buyers lived some distance from insurance would only cover the resulting from the failure. purchaser was not really that the trader, a vehicle offer and sale cost of repairs up to a maximum of The purchaser was also entitled credible. The Tribunal found that agreement (VOSA) was exchanged $2,000 (and had a $500 excess). to recover any consequential the actions were not misleading by fax on 15 January 2010. The purchaser gave evidence loss. The hire of a car while concerning the mechanical The version of the VOSA that that she contacted the trader the BMW was being repaired insurance. was provided to the purchaser by to discuss this. She was upset is consequential loss, thus the However, the trader was fax on 15 January 2010 indicated because she had believed that the purchasers is entitled to recover required to pay $5,819.12, mainly where the purchasers were insurance arranged by the trader the $784 hire cost. because it was held that the required to sign by means of would cover her for any major The purchaser complained transmission failure was of a asterisks in three places. There was mechanical failure. She asked the that she was misled about the significant nature. It somewhat no asterisk next to the box to be trader what he was prepared to do, mechanical breakdown insurance, surprised me that they held that initialled by a purchaser when the and the trader said that he had no expecting cover to extend to there was a failure in respect of the parties wish to contract out of the obligations under the Consumer the entire cost of any significant guarantee of acceptable quality Consumer Guarantees Act. Later Guarantees Act because the car mechanical breakdown. In this and it was substantial. the same day, the trader faxed the was a business vehicle. matter the Tribunal concluded Not much can be said more finance documentation for signing. The purchaser followed up her that the conduct was not about this case except again, The statement of account confirms phone call with an email making it capable of being misleading, dealers have to be careful in respect that the loan was drawn down on clear that she would be seeking to since the purchaser did not ask of what is represented and what Bruce Dell Law – “problem solver” the same day – 15 January 2010. recover the costs of repair, the total to see the insurance policy prior is sold and being mindful of these The VOSA also provided cost being $5,035.12. The purchaser’s to purchasingautofi thele are car, delighted nor ask to have veryBruce decisions as part atof allthe times Autofi and le howteam advising our readers for one year’s mechanical evidence was that she had to hire a any questionson the about lessons the to cover be learned fromthe Tribunalpast Motor deals Vehicle with them. Disputes Tribunal cases If you require legal advice give Bruce a call on 09 570 5036

Bruce Dell Law – “problem solver” . Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor bd Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036 law 12 | www.autofile.co.nz

. Problem bd solver law disputes

Purchaser’s high expectation of The Case: The purchaser expected the transmission longevity transmission to last for a 100,000km The Decision: No responsibility for the dealer since 14 months after sale

At: the Motor Vehicle Disputes Tribunal, Auckland. Background it was also sluggish. The vehicle a replacement transmission On 1 February 2009 the purchaser was returned to the trader who fitted to the vehicle worth bought a 1999 Mazda Familia test drove it and identified a fault $562.50 if the purchaser would from the trader for $8,995. The with the transmission. The trader’s pay the cost of a second hand vehicle had travelled 34,178 mechanic discussed the fault replacement transmission, GST kilometres and was sold with the with the purchaser and told him and transmission fluid together benefit of a 12 month mechanical the transmission would require costing $641.25 but the purchaser time of sale and its transmission breakdown insurance cover. replacement. rejected that offer. was probably as durable as a The purchaser claimed that the The purchaser obtained reasonable consumer would vehicle’s transmission developed several quotations for the The Tribunal’s decision regard as acceptable. The a fault which will cost $1,552 to replacement of the transmission, The factors to be considered by the purchaser’s application must replace. The purchaser claimed one of $1,000 to $2,000, another Tribunal in deciding if the vehicle therefore be dismissed. that the transmission fault is of $1,552.50 and a third of $2,000. was of acceptable quality are that one of substantial character and In late April or early May 2010 the vehicle was, at the time of sale Bruce Dell’s comment wished to reject the vehicle. the purchaser sent the trader an a 10 year old Japanese imported This case involved the purchase of The trader’s position was that undated email letter rejecting second hand motor vehicle that a 1999 Mazda Familia for $8,995.00 the vehicle was of acceptable the vehicle because the vehicle had travelled 34,178kms and was – 34170km together with a 12 quality at the time of sale for was claimed to have a serious sold for $8,995. There was nothing month mechanical breakdown a second hand vehicle which fault namely a faulty automatic wrong with the transmission at insurance cover. had travelled 34,178 kilometres; transmission and gearbox. In the time of sale; the first indication This case again involved the fault with the transmission answer to a question from the that there was any fault with the the vehicle’s transmission occurred more than a year after Tribunal the purchaser says he transmission was, according to developing a fault valued at the vehicle was sold to the believes a vehicle’s transmission the purchaser, in late April 2010 $1,552.00 and claimed as being purchaser and that the purchaser should last for 100,000kms. after the vehicle had been driven “of substantial character”. has since purchasing it used The trader said the vehicle 51,900kms or 17,722kms by the The Tribunal took into account the vehicle to travel more than was one of 35 to 40 vehicles purchaser. what was “acceptable quality” for a 18,000 kilometres before the the trader sells each month. He While the Tribunal considers Japanese import that was 10 years transmission developed the fault. says the vehicle was a freshly there is some truth in the old having travelled 34178km. The The trader considers that it is imported Japanese import and purchaser’s claim that the problem did not seem to arise unreasonable of the purchaser to its odometer had been verified purchaser of a new vehicle might until some considerable time after expect the trader to pay the full as accurate. He says that faults reasonably expect a transmission purchase and after having driven a cost of repairing the transmission with a vehicle’s transmission to last for 100,000kms if properly further 17700km. or for the purchaser to reject the can occur at any time and the serviced, unfortunately the Whist the Tribunal was clearly vehicle now for that fault. purchaser had the benefit of a 12 Tribunal thinks it is unreasonable sympathetic to the purchaser’s month mechanical breakdown to apply that expectation to claim, it was not upheld because The evidence insurance policy until February a 10 year old second hand the purchaser had an expectation The purchaser gave evidence 2010 but the fault had occurred Japanese imported vehicle with of not needing transmission that in late April 2010, after in April 2010 some 14 months an unknown service history servicing for 100,000km which was the vehicle had done about and 18,000kms after the vehicle which was sold for $8,995; not sustainable. 51,900 kilometres, the vehicle’s had been sold to the purchaser. even one which had travelled Interestingly this case should transmission started to make an The trader says it made a written only 51,900kms. The Tribunal be read with the first case. Again, unusual flapping noise, there was offer to the purchaser to pay therefore finds that the vehicle dealers need to be mindful of how a lag in the vehicle’s power and the labour cost and GST to have was of acceptable quality at the these decisions come about.

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www.autofile.co.nz | 13 industry statistics

Around the country Total New Cars 4446 2009: 4473 0.6% Car sales - July 2010 Total Used Cars 7893 2009: 6160 28.1%

Whangarei NEW: 71 2009: 59 20.3% Thames Used: 133 2009: 117  13.7% NEW: 22 2009: 39 43.6% Used: 41 2009: 33 24.2% Auckland NEW: 2063 2009: 1877 9.9% Tauranga Used: 3941 2009: 2922  34.9% NEW: 165 2009: 161 2.5% Used: 333 2009: 288 15.6% Hamilton NEW: 343 2009: 269 27.5% Rotorua Used: 515 2009: 392  31.4% NEW: 45 2009: 41 9.8% Used: 80 2009: 57 40.4% New Plymouth NEW: 79 2009: 92 14.1% Used: 143 2009: 113  26.6% Gisborne Wanganui NEW: 33 2009: 33 0% NEW: 56 2009: 48 16.7% Used: 45 2009: 31 45.2% Used: 54 2009: 53  1.9% Napier Palmerston North NEW: 129 2009: 117 10.3% NEW: 160 2009: 174 8.1% Used: 176 2009: 128 37.5% Used: 191 2009: 186  2.7% Masterton Nelson NEW: 34 2009: 26 30.8% NEW: 54 2009: 54 0% Used: 47 2009: 37 27.0% Used: 115 2009: 96  19.8% Wellington Westport NEW: 464 2009: 462 0.4% NEW: 3 2009: 2 50.0% Used: 620 2009: 546 13.6% Used: 10 2009: 6  66.7% Blenheim Greymouth NEW: 35 2009: 45 22.2% NEW: 12 2009: 11 9.1% Used: 44 2009: 29 51.7% Used: 37 2009: 14  164.3% Christchurch NEW: 450 2009: 684 34.2% Used: 932 2009: 810 15.1%

Timaru NEW: 34 2009: 44 22.7% Used: 84 2009: 46 82.6%

Oamaru NEW: 14 2009: 11 27.3% Used: 22 2009: 20 10.0%

Dunedin NEW: 119 2009: 143 16.8% Used: 246 2009: 151 62.9%

Invercargill NEW: 61 2009: 81 24.7% Used: 84 2009: 85 1.2% 14 | www.autofile.co.nz Madame butterfl y v2 loadIng Osaka 28 Jul, Nagoya 29 Jul, Yokohama 31 Jul arrIvIng Brisbane 20 Aug, Auckland 24 Aug, Wellington 26 Aug, Lyttelton 27 Aug

saracen star v5 loadIng Osaka 14 Aug, Nagoya 16 Aug, Yokohama 17 Aug arrIvIng Brisbane 29 Aug, Auckland 3 Sept, Wellington 7 Sept, Lyttelton 7 Sept

tristan v1 loadIng Osaka 29 Aug, Nagoya 30 Aug, Yokohama 31 Aug arrIvIng Brisbane 19 Sept, Auckland 24 Sept, Wellington 26 Sept, Lyttelton 27 Sept

tbn loadIng Osaka 14 Sept, Nagoya 16 Sept, Yokohama 17 Sept arrIvIng Brisbane 30 Sept, Auckland 5 Oct, Wellington 7 Oct, Lyttelton 8 Oct

Madame butterfl y v3 loadIng Osaka 28 Sept, Nagoya 29 Sept, Yokohama 30 Sept arrIvIng Brisbane 19 Oct, Auckland 24 Oct, Wellington 26 Oct, Lyttelton 27 Oct industry statistics

New Passenger Vehicle Sales by Make July 2010 New Passenger Vehicle Sales by Model - top 25 July 2010

MAKE July ‘10 Market Share MAKE July ‘09 MAKE MODEL July ‘10 MAKE MODEL July ‘09 TOYOTA 668 15.02% TOYOTA 729 Ford FALCON 210 283 FORD 502 11.29% FORD 560 Toyota COROLLA 181 Suzuki SWIFT 231 HOLDEN 441 9.92% HOLDEN 513 Mazda MAZDA3 164 Holden CRUZE 194 MAZDA 438 9.85% HYUNDAI 425 Suzuki SWIFT 158 Holden COMMODORE 176 HYUNDAI 373 8.39% MAZDA 346 Holden COMMODORE 155 Ford FALCON 172 SUZUKI 325 7.31% SUZUKI 337 Mazda MAZDA6 149 Ford MONDEO 158 MITSUBISHI 280 6.30% NISSAN 238 Ford MONDEO 121 Mazda MAZDA6 146 NISSAN 201 4.52% KIA 194 Holden CRUZE 110 Mazda MAZDA3 126 HONDA 191 4.30% MITSUBISHI 178 Toyota YARIS 110 Ford FOCUS 125 VOLKSWAGEN 157 3.53% HONDA 175 105 Toyota YARIS 118 KIA 156 3.51% VOLKSWAGEN 125 Hyundai I30 97 Hyundai TUCSON 106 SUBARU 149 3.35% SUBARU 105 Hyundai SANTA FE 93 Hyundai SANTA FE 105 BMW 101 2.27% AUDI 91 Hyundai IX35 87 Hyundai I30 94 AUDI 94 2.11% MERCEDES-BENZ 76 Mitsubishi ASX 84 Holden CAPTIVA 75 MERCEDES-BENZ 68 1.53% BMW 71 Mitsubishi OUTLANDER 80 Toyota RAV4 74 PEUGEOT 51 PEUGEOT 58 Holden CAPTIVA 79 Suzuki SX4 68 LEXUS 27 LEXUS 32 Volkswagen GOLF 71 Mitsubishi LANCER 65 LAND ROVER 24 JEEP 26 Ford FOCUS 69 Toyota HIGHLANDER 62 GREAT WALL 22 DAIHATSU 23 Nissan QASHQAI 68 Mitsubishi OUTLANDER 61 DODGE 20 CHRYSLER 21 Mazda MAZDA2 57 Toyota CAMRY 61 JEEP 20 VOLVO 20 Toyota RAV4 57 MINI 19 MINI 20 Honda JAZZ 55 PORSCHE 14 CITROEN 20 Mazda CX-7 54 DAIHATSU 12 SKODA 15 Subaru LEGACY 53 VOLVO 12 DODGE 15 Ford FIESTA 51 CITROEN 11 ALFA ROMEO 12 Ford TERRITORY 51 SKODA 11 JAGUAR 11 Suzuki SX4 51 CHRYSLER 10 PORSCHE 10 Mitsubishi LANCER 48 FIAT 10 CADILLAC 10 Subaru OUTBACK 48 SSANGYONG 8 LAND ROVER 8 Suzuki KIZASHI 48 ALFA ROMEO 7 MASERATI 3 JAGUAR 6 FIAT 2 New Passenger Registrations GEELY 4 SSANGYONG 1 2006 2007 2008 2009 2010 HUMMER 4 SMART 1 9000 MASERATI 3 RENAULT 1 Graph courtesy of MTA 8000 CADILLAC 2 FERRARI 1

LAMBORGHINI 2 7000 RENAULT 2 FACTORY BUILT 1 6000 ASTON MARTIN 5000 BENTLEY FERRARI 4000 LOTUS 3000 Total 4446 Total 4473 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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16 | www.autofile.co.nz industry statistics New vehicle market takes a breather

With June a strong month for Industry Association. “Year to sales, the new vehicle market date the numbers of 34,728 are slumped in July with 4,446 still ahead of our forecasts. In New Commercial Vehicle Sales by Make July 2010 passenger vehicles sold, slightly the commercial vehicle market less than in July 2009. Overall the positive impact of Fieldays MAKE July ‘10 Market Share MAKE July ‘09 the new vehicle market remains is still being felt which is TOYOTA 363 23.40% TOYOTA 351 15 per cent ahead of last year, encouraging for the economy as FORD 264 17.02% NISSAN 179 and with a number of sales a whole” Mr Kerr concluded. NISSAN 263 16.96% FORD 157 having ended, including the Toyota remained top selling vigorously promote Fieldays distributor, with nearly 22 per cent MAZDA 130 8.38% HOLDEN 118 specials, those in the industry market share. However top selling HOLDEN 120 7.74% MITSUBISHI 74 can take solace that July is passenger vehicle honours went to MITSUBISHI 104 6.71% MAZDA 73 typically a slow month for the Ford, with 210 Falcons sold, ahead ISUZU 59 3.80% ISUZU 43 new vehicle market. of Corolla’s 181. This was due to HYUNDAI 35 2.26% GREAT WALL 35 “After six months of purchasing by rental companies, GREAT WALL 29 1.87% MERCEDES-BENZ 33 continued growth we are not which accounted for nearly a surprised that the new car quarter of the Falcons sold. The MITSUBISHI FUSO 28 1.81% HYUNDAI 30 market has taken a very small Nissan Navara was top selling MERCEDES-BENZ 25 1.61% VOLVO 25 breath” said Mr Perry Kerr, Chief commercial model, with 261 sold, VOLKSWAGEN 19 1.23% HINO 19 Executive Officer of the Motor ahead of 241 for the Hilux. FIAT 18 1.16% VOLKSWAGEN 19 HINO 15 0.97% FIAT 17 SCANIA 15 0.97% SCANIA 15 New Commercial Vehicle Sales by Model - top 15 July 2010 SUZUKI 8 FACTORY BUILT 13 MAKE MODEL July ‘10 MAKE MODEL July ‘09 IVECO 7 FREIGHTLINER 11 Nissan NAVARA 261 Toyota HILUX 196 KENWORTH 6 MAN 9 Toyota HILUX 241 Nissan NAVARA 146 NISSAN DIESEL 6 IVECO 8 Ford RANGER 191 Toyota HIACE 135 VOLVO 5 SUZUKI 8 Mazda BT-50 104 Holden COLORADO 102 DAF 4 KENWORTH 6 Toyota HIACE 99 Ford RANGER 98 LAND ROVER 4 DAF 4 Holden COLORADO 93 Mazda BT-50 61 PEUGEOT 4 DESIGNLINE 4 Mitsubishi TRITON 76 Ford TRANSIT 48 STERLING 4 INTERNATIONAL 3 Ford TRANSIT 37 Mitsubishi TRITON 43 FACTORY BUILT 3 LAND ROVER 3 Hyundai H1 35 Hyundai H1 30 FREIGHTLINER 3 WESTERN STAR 3 Mitsubishi L300 28 Mercedes-Benz SPRINTER 27 KIA 3 KIA 2 Isuzu D-MAX 22 Volvo FM 23 INTERNATIONAL 2 STERLING 2 Great wall V240 21 MACK 2 GROVE 1 Isuzu N SERIES 19 MAN 2 MACK 1 Ford TRANSIT 17 SSANGYONG 1 TEREX 1 Fiat DUCATO 16 Total 1551 1267

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www.autofile.co.nz | 17 industry statistics

Used Passenger Vehicle Sales by Make July 2010 Used Passenger Vehicle Sales by Model - Top 25 July 2010

MAKE July ‘10 Market share MAKE July ‘09 MAKE MODEL July ‘10 Make Model Jul ‘09 TOYOTA 2075 26.29% TOYOTA 1670 Subaru LEGACY 417 Subaru LEGACY 255 NISSAN 1303 16.51% NISSAN 1032 Toyota COROLLA 367 Toyota VITZ 250 MAZDA 1006 12.75% HONDA 786 Toyota ESTIMA 272 Toyota COROLLA 237 HONDA 974 12.34% MAZDA 657 Mazda ATENZA 268 Honda ODYSSEY 216 SUBARU 673 8.53% SUBARU 487 Mazda DEMIO 228 Toyota ESTIMA 170 MITSUBISHI 440 5.57% MITSUBISHI 369 Toyota VITZ 228 Mazda DEMIO 163 BMW 286 3.62% SUZUKI 197 Nissan PRIMERA 200 Nissan PRIMERA 163 VOLKSWAGEN 211 2.67% BMW 169 SUZUKI 181 2.29% VOLKSWAGEN 151 Honda STREAM 197 Nissan BLUEBIRD 160 FORD 169 2.14% FORD 132 Nissan BLUEBIRD 189 Mazda ATENZA 151 AUDI 81 1.03% HYUNDAI 95 Honda ODYSSEY 188 Subaru IMPREZA 148 HYUNDAI 66 MERCEDES-BENZ 63 Honda CIVIC 178 Nissan WINGROAD 134 MERCEDES-BENZ 59 AUDI 38 Subaru IMPREZA 162 Honda ACCORD 133 CHRYSLER 57 PEUGEOT 36 Honda ACCORD 159 Nissan MARCH 130 CHEVROLET 44 CHEVROLET 31 Nissan TIIDA 133 Bmw 3 Series 126 PEUGEOT 43 CHRYSLER 25 Mitsubishi LANCER 129 Suzuki SWIFT 125 VOLVO 30 DAIHATSU 24 Mazda AXELA 126 Mitsubishi LANCER 119 JAGUAR 28 ISUZU 22 Nissan WINGROAD 122 Honda FIT 109 LAND ROVER 20 VOLVO 20 Toyota ALTEZZA 116 Honda CIVIC 97 DAIHATSU 15 ALFA ROMEO 17 ISUZU 15 JAGUAR 17 Mazda MPV 110 Toyota PLATZ 96 MINI 13 SAAB 16 Toyota IPSUM 110 Toyota ALTEZZA 94 ALFA ROMEO 11 CADILLAC 13 Suzuki SWIFT 100 JEEP 11 OPEL 13 Volkswagen GOLF 97 SAAB 11 LAND ROVER 11 Toyota ALLEX 96 OPEL 10 RENAULT 11 Toyota CALDINA 95 FERRARI 6 HOLDEN 9 Honda FIT 94 HOLDEN 5 SMART 6 LEXUS 5 LEXUS 5 PONTIAC 5 JEEP 4 Used Commercial Vehicle Sales by Make June 2010 PORSCHE 5 PLYMOUTH 4 MAKE July ‘10 Market share MAKE July ‘09 BUICK 4 CITROEN 3 NISSAN 70 33.02% TOYOTA 78 DODGE 4 DODGE 3 TOYOTA 51 24.06% NISSAN 77 FIAT 4 ISUZU 29 13.68% MAZDA 19 RENAULT 4 MAZDA 16 7.55% ISUZU 15 CITROEN 2 CHEVROLET 8 3.77% MITSUBISHI 11 SKODA 2 FORD 8 3.77% FORD 7 ASTON MARTIN 1 SUZUKI 7 3.30% OTHER 30 BENTLEY 1 MITSUBISHI 4 CADILLAC 1 DODGE 3 KIA 1 HOLDEN 3 LAMBORGHINI 1 DAIHATSU 2 LEYLAND 1 HINO 2 LOTUS 1 MERCEDES-BENZ 2 LVVTA 1 MG 1 AM GENERAL 1 OLDSMOBILE 1 CADILLAC 1 PLYMOUTH 1 FACTORY BUILT 1 ROLLS-ROYCE 1 MITSUBISHI FUSO 1 SMART 1 OSHKOSH 1 TVR 1 VOLKSWAGEN 1 VAUXHALL 1 VOLVO 1 Total 7893 6160 Total 212 237

18 | www.autofile.co.nz industry statistics continued from page 1 Is strong July a sign of market turnaround?

Auckland dealers seemed to between $10,000 and $17,000. The ever-popular Subaru Legacy have had a good month with one Some cheaper ones that we kept at saying he had “a very good July trades also went out the door.” and it’s still continuing. It was a Martin Harcourt at large-scale big month after three months of Christchurch dealer Value Cars nearly dying.” (350 cars on its Moorhouse Avenue However, the dealer, who yard) says the market is “not too declined to be named, says that bad. We’re going okay. “margins are down. We had to meet “It’s not booming out there, it the market and it’s hard to maintain could be better and it could be a profit margin.” worse, but we’re surviving.” been consistent.” Motors in Dunedin says August has He says sales and inquiry He says sales have “just been Harcourt says the market has made an “exceedingly slow” start. numbers were strong. “People consistent. Before the so-called been slowed by the tougher loan “It’s been a very peaceful start are starting to gel and make a downturn we were doing 240 cars a market. “We’ve lost the second to the month. We had no trouble in decision, but whether it’s a sign of month, now we’re doing 120 to 140. tier finance companies and the July but so far August is the slowest a turnaround or whether it’s a blip, I “It’s not what it was when times first tier ones are being tougher; month we’ve had for a long time. don’t know.” were good a couple of years ago. plus government regulations have It’s diabolical.” His best-sellers were “late-model, It has come back a bit but it hasn’t slowed things up as well.” Wilson says talk of a second low-mileage, clean cars priced changed (month to month) it’s But he’s adamant that it’s not recession has seen Otago buyers all doom and gloom and he’s close their wallets. optimistic about the future. “Talk about a second recession Used Import Passenger Registrations Rob Fong of Wellington-based and their sporrans close up. (People 2006 2007 2008 2009 2010 14000 wholesaler, FQ Cars, says that are) a lot more conservative down Graph courtesy of MTA though the market had slowed for a here and (talk of a deepening 12000 “couple of months, we had a good recession) pretty much slows it up. 10000 (July) and we’re on-track this month. “It’s everyone. Everything is It seems to be going alright. slow, not just the car market. 8000 “But you can’t put a gauge on it,” “We’ve had no complaints 6000 he says. “It’s up and down. about the winter at all, but this “Last month, we didn’t buy. We would be the first month where I 4000 had 240 cars in stock and ‘boom!’ have even thought ‘oooh.’ 2000 the lot went out the door, so we “And normally I would think that were out there buying. every month during the winter.” 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec “There’s no rhyme or rhythm to For the record, Toyota took the the market. Last month we sold a biggest market share in July, with lot of high-end cars; this months it’s 2075 sales, followed by Nissan been cheap stuff. So our approach (1303) and Mazda (1006). Used Commercial Vehicle Sales by Model - Top 15 July 2010 is to have a variety of everything.” No other brands broke the 1000 MAKE Model July ‘10 MAKE Model July ‘09 The market volatility makes it sales mark. Nearest was Honda Toyota HIACE 33 Toyota HIACE 55 difficult to decide what to buy. “You with 974, followed by Subaru (673) Nissan VANETTE 29 Nissan CARAVAN 33 don’t want to buy any more Honda and Mitsubishi (440). Odysseys and in a week you sell BMW was seventh, on 286, Nissan CARAVAN 27 Nissan VANETTE 33 five; but they can sometimes sit buoyed by good sales of 3-Series Isuzu ELF 27 Mazda BONGO 15 there for two months. which have been in plentiful supply Mazda BONGO 13 Isuzu ELF 12 “You don’t really have an at good prices. Volkswagen was Nissan ATLAS 8 Mitsubishi DELICA 8 indication of how the market is.” next with 211, followed by Suzuki Suzuki CARRY 7 Toyota DYNA 8 He sees the major problem (181) and Ford (169). Toyota DYNA 5 Nissan ATLAS 7 being customers’ job security. Subaru’s Legacy remained “Some people don’t want to the single biggest-selling model. Toyota HILUX 5 Dodge RAM 5 commit to things, which you can’t Toyota’s Corolla and Estima were Chevrolet SILVERADO 5 Hino DUTRO 4 blame them for. We’ve had deals second and third. Mazdas filled Mitsubishi CANTER 4 where people come in to buy cars fourth and fifth, the Atenza Dodge RAM 3 and two weeks later decide not leading the Demio which dead- Mazda TITAN 3 to (because their hours of work heated with the Toyota Vitz. The and wages have been lower than Nissan Primera was seventh, ahead Toyota TOWNACE 3 expected).” of the Honda Stream, Nissan Nissan CIVILIAN 2 Lloyd Wilson of Lloyd Wilson Bluebird and Honda Odyssey.

www.autofile.co.nz | 19 industry profile Profile: Hayden Johnston

Located in the industrial area of Penrose, Auckland, Genuine Vehicle Imports had long functioned as vehicle wholesalers supplying to dealers. With the downturn came a need to change their business model. We caught up with current GM Hayden Johnston, son of founder Peter (PJ) Johnston.

Was it a forgone conclusion So you’re pretty familiar with What was the reasoning that you’d end up in this how things run? behind the change? business? Very familiar with all aspects, The main thing is obviously the Pretty much yeah, I’ve grown up in right through from washing cars recession, and like for a lot of and around the industry all my life. and sweeping floors to buying, people it was either change or Obviously I wasn’t forced into it, selling, and managing prima close the doors. Everybody was but I’ve got a passion for cars, and I donna salesmen. slow, so dealers weren’t buying think it’s in the blood. cars, overnight we had 650 cars Did you enjoy your time in and we couldn’t sell them. And at How old were you when you Japan? the same time, the Yen dropped sold your first car, 6? It was good, though I spent my dramatically, and so everything I think I’ve been doing deals my time working hard. There are owed us retail plus. We just had to whole life, basically, on all sorts. I always a few other full-time Kiwis trade our way out of it. remember trading matchbox cars up there working as buyers and That was the same situation and micro-machines with kids at Saturday Nights in Rappongi were as for a lot of guys, it was either primary school, and progressed a great reward. diversify or go under. And a lot of to cigarettes and porn mags at guys went under, they just couldn’t showroom here or was it boarding school! Has the industry changed handle it, they just couldn’t change. just storage? much in the time you’ve We’ve always had a semi- Is your father still active in been in it? What do you think the key is showroom here. We did a very the business? Enormously. Even since ’08 these days? small – minimal – amount of Not really, he’s still around, but we’ve had to change our whole I think it’s looking ahead and being retail, we didn’t even have retail more so he bases himself here for business plan. We used to be willing to change. It’s a case of change salesmen. So it was very casual, if his other business interests and purely auction and wholesale, we before you’re forced to change. I think someone walked in off the street, motorsport management. were doing three hundred plus that’s why you’re seeing a lot of these and saw something they liked we’d cars a month, purely dealer to older guys getting out, it’s just too do a deal. The cars were dirty, still How long have you been dealer. We were running a dealer hard, and they don’t want to change. covered in writing, and they went working here? auction over at Turners, and They still want to hark back to the old straight from here to auction. No Full time in current position, running a huge wholesale outfit days of big margins and being big effort was actually made to sell probably about 3 years. I was as well. But we’ve completely noters, and I just don’t think that’s the cars. I guess that’s how our style based in Japan for about 4 years changed, doing no auction and case anymore. of retail was spawned, which is a before that contract buying. Prior very little wholesale. We’re now big yard, cars all dirty, sitting out to that I had worked here doing doing full retail, which has been a Back when you were doing the back. We’ve tried to stick with wholesaling and running auctions. very big turn around for us. wholesale was there a that to a certain degree, it’s quite a comfortable environment to be in. We’ve obviously had to spruce things up a little bit, painting walls, upgrading offices and converting the dirty warehouse lunchroom into a modern customer lounge.

But I guess consumers know when they’re walking into a place that’s a bit rough like this that they’re getting their

20 | www.autofile.co.nz brand. Even if people don’t know got to be right to bring in the what we do, they know GVI, they’ve heavy duty expensive stuff. But seen it out there, and we’ve put a we buy a broad spectrum. The lot of effort into that. cheapie stuff is getting more and more difficult to bring in obviously Price-wise, what’s the sweet due to emission regulations, and spot in the market for you? just what’s available. We always There’s no particular price bracket try to buy something that’s a little that dominates, we’re selling different, pay the money for good everything. The last few weeks cars, good colours and good k’s. it’s the cheaper vehicles that are selling strongly, but the last three Is the buying tough because months it’s been the 20 grand people are holding on to cars plus that’s been selling. We sold for longer? out of all our heavy Euro stock, The Japanese domestic market is all our heavy Jap stuff, it’s just very strong, and if the domestic disappeared, and that’s been dealers want a car we’ll just never difficult to replace due to the be able to compete with them, currency. that’s just the reality. Just the shipping alone cancels us out of Can you pick what will be the equation. And you’ll find that popular say next week or is the with certain models we’re seeing an market pretty inconsistent? increase in Japanese registration, Not really, no. Even if we look they’re been reregistered now, at what we sold this week and rather than as in the past when buy the same again, you can’t people would simply buy a new guarantee you’ll sell a car just car. So we’re seeing a lot more cars because you sold three of them with one or two years plus worth last week. For me anyway, I think of registration on them, and they’re it’s very difficult to pick patterns, immediately more desirable for the which is why we’re lucky because domestic market. we’ve got vehicles right across the If a car’s got a lot of Shaken on it I money’s worth? is an immediate response. price ranges, so we’re not stuck don’t waste my time bidding, unless Yes, and they are, we don’t have with budget cars or expensive cars it’s something you think you’ll be the overheads of a big flashy yard, Do most of the customers visit or middle range cars. We’ve always particularly strong on, or if they’re it’s just a dirty big warehouse. Pack the yard or are many buying got a little bit of everything. not going to be strong on for lots of cars in, sell lots of cars. It’s just entirely online? whatever reason, if it’s done high k’s turnover. We’re not worried about We do a bit of sight-unseen sales, How are you finding the or is a bad colour domestically. big hits, we’re just here to sell cars, we sell a lot to the South Island. A buying in Japan at the and that works for us. lot of those people buy purely on moment? Which are the bad colours? photo and an AA inspection. The The buying at the moment is They’re not big on reds, blues or How do you guys advertise? vehicle arrives at their doorstep, difficult, there is a severe stock greens. Darker colours are slow We’re primarily net based, and and that’s working well, and we’ve shortage, there’s no doubt, so prices apart from Black which is probably that works well since we track all got a good reputation with that. are high due to that, everyone is the most expensive. It does differ our enquiries, so we know where Most are happy with a good competing over limited stock. Also from model to model. Coral metallic everything comes from. Probably description and photos, we’re not the quality of stock is very average, Subaru’s, that’s a cheap colour, like most people find these days, selling one off models. A lot of the I’ve not been buying a lot for that that’s why you see a lot of it around the net is a very strong tool for us. customers will have gone to their very reason –I’m not going to buy but it’s an awful colour. Interior local dealership and driven one, rubbish cars just to buy cars. We’re colours are also a price factor. Beige No radio or print? but will say “I want that one from a bit light on stock at the moment, Interiors are cheaper and are a No not yet, we do minimal paper Auckland”, for whatever reason. We probably about 50 odd down, private hate of mine! advertising, we do a bit with find that people have already driven running about 270 whereas we’d Autotrader, and that works. the cars, they know what they want, like to run closer to 350. Do you have any predictions and they just want that one. for how the market will shape With the web you know Any particular areas in the up for the rest of the year? exactly what you’re paying You guys have quite effective market that are more difficult I just don’t think I’m brave enough for, whereas other media you colouring on your signage. to buy than others? to hazard a guess, it’s week by week, hope for the best. Yeah, they’re strong colours, our Well with the rates the way they month by month really. When it’s It is a little bit like that, you fire branding is very strong, we’re are obviously the top end stuff is going well sell as many cars as we a shot, and you wait to see what out there with motorsports a little more difficult to buy, but can, when it’s not try and figure out happens. But with the web there sponsorship, and it’s a known that’s always the case. The rate’s what we can do better.

www.autofile.co.nz | 21 motorsport

Edmonton win a new ‘first’ for Dixon

Scott Dixon was bemused, on a restart with only laps to go. apologised for the pitlane fracas came on the pit-to-car radio metaphorically shaking his As the pair ran to the outside of but is still angry at the time penalty halfway through the first lap of the head, after being declared Turn 1, Dixon ducked under Power for the blocking incident. restart to tell him Castroneves was winner of the last IndyCar race at for second place, made a bid to get “All in all, (it was) not what I getting a stop/go penalty. Edmonton, Canada. past Castroneves but couldn’t. expected to happen at the end,” “Then when I…saw he wasn’t But a win’s a win and he’ll take Officials ruled Castroneves had says Dixon of the win. “In some actually going to come into the pits, it; the victory has consolidated his blocked Power, in contravention of ways, I knew those two, Will and I figured something was going to third place in the series standings an IndyCar rule, and ordered him Helio, were fighting pretty hard. happen after. Pretty much within half and moved him a little closer to to make a drive-through penalty. You could see that the first time a lap of the restart, I knew Helio was second-place man, his teammate He didn’t, crossed the line ahead Helio passed Will…but to go that going to have a penalty of some sort. Dario Franchitti. Australian Will of Dixon and then was docked 20 far to the right in Turn 1? “It’s not a way you want to win, Power leads the series. seconds which dropped him to “I just continued on with the for sure. When I win, I want to win However, Dixon says it was 10th place. regular line where it’s nice and (by) being faster or putting in a odd to win a race in which he The Brazilian was furious and clean and figured or hoped that good pass on someone (but) the hadn’t led a lap. clashed physically with officials they picked up a lot of debris and way our season is going, I’ll be The win came his way in pitlane. This week, IndyCar were going to make it tough (for taking anything at the moment. after Power’s teammate Helio fined him $US60,000 for that and themselves) through two and one. “It’s the first race I’ve won without Castroneves, leading at the time, was placed him on probation for the That’s kind of what happened.” leading a lap. I guess it will go down alleged to have blocked the Aussie rest of the season. Castroneves has Dixon says the Ganassi team in my own little record book.” Gentleman Jim and Godzilla meet again

Australian-based Kiwi Jim the finish line on lap 144. But by then Richards will be reunited with his race officials had thrown the red flag Bathurst-winning Nissan R32 Skyline and declared the race over. Group A Touring Car at this weekend’s Under international racing 2010 Lakeside Classic Speed Fest at rules the finishing order was the Lakeside Park, Queensland. on the previous lap, the race’s last The all-wheel drive turbo’d six- complete lap. cylinder Skyline took Richards and a There was immediate controversy, young Mark Skaife to victory in the Dick Johnson and Ford fans arguing 1991 Bathurst 1000. They repeated that the Shell Sierra RS Cosworth was the normally mild-mannered and third Bathurst, this time in a Holden the feat in 1992 in a race that was the rightful winner not the Skyline. taciturn Richards – nicknamed Commodore. During his long career, shortened after crashes including a But the rulebook is clear, and the Gentleman Jim by the Aussie media – Richards won seven Bathurst 1000s, major one at Forrests Elbow during a Nissan had been the leader at the to lose his cool and label the jeering three with Skaife and three with rainstorm late in the race. end of the final lap of the race. crowd “a pack of arseholes.” the late Peter Brock. The seventh The winning Skyline got caught Furious fans booed Richards and A decade later, Richards and was with Swede Rickard Rydell in – up in the mayhem and didn’t cross Skaife on the victory dais, causing Skaife teamed up again to win their appropriately – a Volvo S40.

22 | www.autofile.co.nz motorsport

Musical chairs in Murph’s Commodore Paddon can’t Greg Murphy will have Murphy at Bathurst on October wait for next a different co-driver in the 10, and former World Touring Car Rally Finland Paul Morris Racing Holden Champion (WTCC) Frenchman Commodore VE for each of the Yvan Muller will co-drive in Hayden Paddon has caught the three V8 Supercar endurance the Gold Coast 600 at Surfers Rally Finland bug after finishing races which begin with the Paradise on October 24. 21st and third in Group N on his L&H 500 at Phillip Island on Simonsen (32) has extensive first attempt at the event. September 12. Sportscar/GT and V8 Supercar “I want to (come) back and do V8 Supercar Rookie Tim experience, and finished fifth at the rally again and again. It’s an Blanchard (23), a former Bathurst in 2007. amazing rally.” Australian Formula Ford Muller (40) is an experienced The Kiwi finished second in the champion and Fujitsu V8 V8 Supercar racer and won the Pirelli Star driver section, behind development series runner, will 2008 WTCC. Group N winner, Estonian Ott be in the chair for Phillip Island, Murphy says the changing Team owner Paul Morris will Tanak in an identical Mitsubishi making his main game debut. co-driver line-up is necessary join Russell Ingall in the outfit’s Lancer Evo X. Dane Allan Simonsen will because of the drivers’ prior second Commodore for all three That’s despite a tough baptism partner four times winner commitments. enduros. of fire on day one that left Paddon “a little bit demoralised. “I couldn’t really find the rhythm I wanted and was finding the car quite hard to get turned-in to the Fast metal displayed at Speedshow corners. I felt I had to really force Motorsport fans were out in NZV8 Ford Falcon race car and displays of modern and historic the car to get it tucked in. their droves at the 2010 Speedshow the launch of Gareth Morgan’s racing cars, drag racers, speedway “On top of that, we’d had some expo at Auckland’s Showgrounds in new book about adventure Midgets and Sprint Cars, Stock problems with broken wheels on Greenlane last month. motorcycling in the Andes in Cars and limited-run road-going the first loop; those vibrations Major attractions included the South America. sports cars. made it quite difficult to stay on it unveiling of Peugeot’s new RCZ Several car companies showed Motorsport-related trade stands with the car. coupe road car, John McIntyre’s new models, and there were also drew strong interest. “I knew very well that I could drive faster than I was driving. Overnight, the team softened the car a little bit and I was much happier on Saturday.” Paddon was “pretty chuffed that we ran second (in Group N) for so long on my first attempt at this rally, but the local guys are so quick here (a Finn placed second). “My chances of staying second Clockwise from top left: in (Group N) were spoiled when I A replica of the Peugeot RCZ raced at the had a puncture on the penultimate 2010 Le Mans 24 Hours; McLaren M8 loop of stages. CanAm; Fleetwood Motors Ford Mustang “It might have been possible - the first pony car to race in New Zealand, driven by Ivan Segedin; Heat Treatments to fight a little bit for second place, Toyota Supra Funny Car; John McIntyre’s but that’s not what this event was 2010/11 season NZV8 Falcon; 1925 Bugatti about for me: it was about getting Type 23 ‘Boat-tail’; early 1970’s McRae GM1 some very good points for the Formula 5000 racing car; Steve Millen’s championship and trying to contain modified Stillen Nissan GT-R and Ford GT. the time the local drivers would be able to find on these roads.” Pirelli motorsport manager, Mario Isola, was happy with Paddon’s performance. “(He) drove well and showed some more good speed; he was in the top three or four stage times for the duration, which is good for his first time here.”

www.autofile.co.nz | 23 retro view

Each month we’re taking a look at a past issue of Autofile, the story of the day, and the changes that have taken place in the industry since then.

The New Zealand market hasn’t of marking time at this stage, might see a little pick-up in August- so it’s a problem.” seen a down-turn this big before, and possibly now we’ve all got September, and then maybe it will Milner see a comparison believes Rod Milner. to think towards the end of 2010, start to get a bit of impetus and flow between dodgy dealers and the “The market in 1999 was and into 2011. So when things on, but I don’t know.” builders involved in the leaky going along very nicely. But start to sell down, we’ll be fine. The financial situation, home saga. then a 2000 recession came in The export market’s doing very improved build-quality, and “The motor trade is no and it dropped down again. well, but the local market’s not. changing attitudes to cars means different, there’s always the idiot We’re going through the worst You’ve only got to look here that there is a lower turn-over of fringe who are there to rip every recession they say in 80 years, today, the yard’s empty and vehicles, and consequently fewer off, get rich quick, and fly out. and I agree. Because a normal there’s not much happening. are sold, says Milner. Look at all the leaky homes. What recession in New Zealand only And that’s right throughout “It’s not a matter of people have the builders done? They’re lasts 12 months, but so far we’ve everywhere I understand. changing their car every three all living in Aussie on the cream seen two years, and it’s looking “Maybe we will see a pick-up in years anymore. of it, or their company’s been to go longer, so it’s very unusual. August-September, pre-GST, but we’re Right now we’re going back put into liquidation and they’ve “Business is still slow, and not seeing it yet, definitely it’s not even through our clients, and out of move on, gone.” will remain so until consumer being mentioned. I’m hopeful that we our 2004 clients, only two have Builders were forced into poor confidence picks up. It’s a matter changed. It’s amazing, they’ve practices to meet demand, says still got their cars.” Milner. “They had to follow the “The other thing you’ve got leader, because it came down since 1999 is that the auctions to price, and these leaky homes are much stronger. But when I were cheap to build. And a good look at the auctions it’s almost builder is like a good dealer, he nearly all high-k stuff, so a gets forced out, because one’s person’s got to make up their trying to do quality, and the mind, are they buying a car a other’s doing rubbish, and the quality, or price. And so it’s a rubbish one will always win. The consumer’s choice. So I think person who gets rich is often the that at the moment they’re one who’s dealing in crap.” buying very much on price, With sales down, it’s likely that and quality is sort of second.” the number of vehicles imported The focus on price also will decrease. means that unscrupulous “Imports could drop, there’s sellers willing to fleece no doubt about that. Dealers I customers to make a buck would say have started to curtail have the opportunity to dupe their buying. We have. Or at least customers, believes Milner. are buying selectively, throwing “There’s no doubt about it, stupid bids. I’ll go through the the public are so gullible, that auction houses and might throw they’re chasing price and then a dozen bids in, but they’ll be they bleep when it all goes dumb bids. wrong. But they like the low “Dealers might be overstocked price to start. And people will at the present time, but probably feed off this. no more than 20%, and you can “There are some sellers soon eke that out, since you’re out there with very little probably stocked one or two compunction, and that months, as long as you can afford creates a whole new price it. One or two months can correct structure. So there are that. You can do your corrections buyers out there thinking pretty quickly, and if all else fails, they’re getting a bargain, use the CFP strategy, which is Cut and in reality they’re not, the Flippin’ Price.”

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